DeepSeek Will Be Good for Business, ASML Chief Says -- WSJ

Dow Jones01-30

By Kim Mackrael

DeepSeek prompted a major sell off of tech stocks this week, but ASML's chief says the artificial-intelligence upstart could boost the chips sector in the longer term.

Tech stocks-including ASML-fell sharply Monday after DeepSeek said it had trained high-performing AI models using less advanced chips. The news upended the conventional wisdom that expensive, cutting-edge chips are essential for building the most advanced AI systems.

That isn't necessarily bad news for ASML, according to Chief Executive Christophe Fouquet. The Dutch company supplies machines-including those that produce the world's most advanced chips-to customers including Taiwan Semiconductor Manufacturing Co. and Intel.

"Anyone that lowers costs is in fact good news for ASML because lower cost means AI can be used in more applications, more applications mean more chips, and we are in the business of providing equipment to people who make chips," Fouquet said.

His comments came as ASML's shares rose sharply Wednesday after the company reported better-than-expected orders for the fourth quarter.

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January 29, 2025 11:37 ET (16:37 GMT)

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Comments

OldYee
01-30
OldYee
This is a visionary CEO with the most excellent view. Anything that can lower cost is indeed good news. Lower cost means more applications, more usage and thus more demand for chips. More business for chip producting company. With lower version chip, DeepSeek can achieved such good results. Image if using higher version chip, what could the results be? AI can advance much faster.